Understanding zomato business model in simple words



In august 2020, zomato drew praise for introducing a period leave policy, allowing female employees to take up to 10 days time off per year if they are unable to work due to menstrual cycle health effects. Delivery boys earn between rs.25,000 and rs.50,000 per month it’s a sharp rise from the rs.10,000 – rs.25,000 the workers earned last year. Soon they expanded their website to make it available to everyone. So this was to tell you - "Relax' - release the stress and leave all that marketing hassles to us. Gupta understands how to create and implement business strategies.


It has launched a range of initiatives like zomato pro & zomato pro plus. As of q2 fy22, between zomato pro & zomato pro plus, zomato had 1.5 million members & over 25k restaurant partners in india. Since q2 fy21, revenue from zomato’s food delivery segment has been trending upwards. Gross order value (“gov”) grew by 19% qoq in q2 fy22 and 158% yoy to inr 54.1 billion ($721 million).


But, zomato defied the odds and came out even stronger to dominate the food delivery industry in india. Members can gain access to exclusive discounts and receive their food more quickly from participating restaurants. The company also offers zomato revenue model consultation service, helping new restaurants choose a suitable area to establish themselves. Advertising was one of the first sources of revenue for zomato and remains to be a significant contributor today. The company charges for sponsored listings, allowing restaurants to increase their visibility.


The market of food startup changed in india after the arrival of swiggy. Previously the focus of zomato was on restaurants search service but it realized soon that online food delivery was going to be big in india. So, zomato shifted its focus from the rating and search service to online food delivery.


Let’s understand how zomato is making revenue by looking at each factor contributing in its revenue generation. Zomato’s platform is also beneficial for local restaurants that are looking for promotional tools or mediums to target a large pool of audiences. Different restaurants align with zomato to enhance their visibility.


Today it’s serving platforms and operations have extended to over 21+ countries and are determined to continue to grow its customer base. In the past few years, zomato has shifted its focus on being a transactional company instead of relying a hundred percent on its advertising revenue. The company is trying to balance its both features the delivery and the dine out which has generated a revenue of $2m in the sustainability department.

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